As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
Overstating projections A problem that can arise from starting the budget is when the person who created the budget gets an idea that the business will sell more items than the business is realistically able to do. If this happens the business will spend a lot of money on items that the budget believe the business will sell but in reality the business will not be able to sell this stock. IF the business is in the food industry and this problem happens it will end up going to waste as food goes off. This will result in the business losing a lot of money which they could spend elsewhere and if the business doesn’t have much money this money could have been used to pay off their expenses. If the business does lose this money they might
Open Source Software 1 OPEN SOURCE SOFTWARE What are reasons for business to use open source software? Robert Keidel Western Governors University Open Source Software What are reasons for business to use open source software? 2 With the current economy difficulties, companies are trying to find areas in their businesses, where they can save money. Many companies are having no choice to let people go. Some try to avoid that and looking in other areas to save money.
Business Resources – D3 Possible causes of the cash flow problems Cash flow problems are a major cause of insolvency. Cash flow planning involves making sure that a business generates enough cash at the right time to meet pressing liabilities. A cash flow forecast is really useful for a business as it helps them to identify their inflows and outflows, however if it is not manages properly it may causes some problems which may affect the business and the way this is performing. Owner’s drawing Owner’s drawing is when the owner of the business takes money out of the business for its personal use. In our case study, the owner for Yo Retro has taken different amounts of money out of the business from January to June, however in the next six
Finally, it might be difficult for Groupon to lure small businesses, who were its primary customers, since Groupon did not bring in new customers for these businesses but only attracted existing customers. Consequently, some businesses in the past have lost money on account of using Groupon
For instance, they may be able to start up with a new idea. | During recession, Innocent’s confidence will get low as people aren’t demanding for their products as they demanded before. This leads Innocent to cut down on production because they no longer need to make many goods as they used to. Because people are not buying as many products so their sales will decrease. By this time, Innocent might struggle to pay wages so they need cut down staffs as they no longer need them.
If he relocates one of the stores he could also lose customers as well. The internal weakness include not wanting to hire outside of his family and the timing if he relocated one of his stores which he could lose current and potential customers due to the opening of West 9. He is not sure of his ability of running two stores either . External perspectives The characteristics of this industry are that with similar companies that are larger it greatly affects smaller companies with the cheaper prices that these companies can offer to customers. The firm’s strategy for differentiation is to be able to provide exceptional customer service by react quickly to competition
The decline has cause many smaller companies to push their company less and not worry of about effectiveness and stock prices because there is less push from takeovers. This can be bad for investors. In the end I don't think takeovers are such a bad thing because it can force businesses to really push to achieve higher stock prices but sometimes these takeovers can lead to putting employees and the smaller company at high risk. When Executive Turns Buyout Adviser, Alarm Bell Go
Kudler may not have the resources to launch advertising for the company because problems have occurred because of the lack of experience to the target market. Kudler needs a target market to allow the company to focus on marketing dollars and brand communication on a exact markets that is more likely to buy from than or other markets. This is a much more reasonable and efficient, and successful way to make potential clients and generate business. Kudler chain of stores makes them a distinguished factor in the market. This is why a lack of customers will have a huge affect on the growth of the company because of the decrease of the sales in the
However, there is a problem that Costco has to deal with is that their profits mostly from its membership fees instead its net income. They are sometimes keeping the prices too low to compete with their competitor but this strategy has a disadvantage. They couldn’t make a lot of profit from the merchandises. Therefore, a recommendation needs to be given. They should utilize their space in each store efficiently.